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First it was Huntingdale, now Yarra Yarra - $$$$$$$$$


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#31 amanda_wong

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Posted 18 December 2003 - 01:59 AM

henry - do you happen to be student of economics? Not many people these days use the term "opportunity cost" (and after teaching it for a whole semester, some of my students still don't get it!)



#32 henry

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Posted 18 December 2003 - 09:10 AM

amanda_wong,
"Opportunity cost" is one of the first concepts covered in the VCE Economics course (Year 12 in Victoria), which I did last year. I'm doing my best to sound as intelligent as Jim!



#33 MatthewM

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Posted 18 December 2003 - 10:06 AM

Henry,

my share value tripled in three years, and is now an asset I may choose to borrow against, which is something I would not have been able to do to the same extent, had I elected to simply plough the principal into a managed fund etc. I also get the side benefit of playing golf at a good club, and meeting great people.

You may also wish to consider the benefit of managing your own super fund, with the portfolio including such a share, as the lifestyle benefit as you refer to it is significant, and the performance in the last few years would have far exceeded any of the major houses results, with respect to super fund growth.

Matthew



#34 DL

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Posted 18 December 2003 - 06:22 PM

Fair point MM.

and the performance in the last few years would have far exceeded any of the major houses results, with respect to super fund growth.  

You were fortunate enough to have made a wise investment however, apart from The National, which other clubs have significantly increased their share value?

On the subject of value, 30K is a ludicrous amount for Heritage.



#35 henry

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Posted 18 December 2003 - 06:26 PM

MatthewM,
in the medium to long-term, they cannot be expected to outperform something like a managed fund when you take into account the price of maintaining the investment (almost $5k/pa now).

Your share price tripled in three years, but is now worth significantly less than what it was eighteen months ago. I remember in mid-2002 when the going price was almost $40k - I think I could pick one up for low-20's now without a problem. If the housing bubble bursts sometime soon, I can see the share price falling even further, well below $20k. The demand just isn't there anymore for rapid growth in the share price.

Once again, I'm not saying that transferable memberships are a bad thing - but they're a lifestyle decision which cost significantly more than any return you're likely to make. Just like joining any other golf club, you do so for the golf, not because you're going to reap financial reward from doing so.



#36 amanda_wong

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Posted 18 December 2003 - 06:44 PM

Ahhh - ok henry - we cover it in NSW Y12 economics also but most students have memories like sieves!



#37 ttitheridge

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Posted 22 December 2003 - 01:25 AM

Matthew M,

I'm leaning toward's henry's argument.

Even if we were to assume that ALL of these style memberships were guaranteed good investments, 90 out of 100 avid golfers cannot dream of getting together $25-30k for ANYTHING, let alone a golf club membership. One doesn't merely have to decide it's a good investment, one has to have a few more dollars in their pocket too.



#38 ellimb

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Posted 05 January 2013 - 06:44 AM

Bumped ! Lots of changes ! Interesting reading.

#39 Bernie_Larkham

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Posted 05 January 2013 - 07:43 AM

I wonder if MM could spruik about his brilliant investing skills now?

#40 golfguy33

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Posted 05 January 2013 - 10:08 AM

Considering that Matt has added one or two other sandbelt club memberships to his CV since 2003, then yes I'd say he was investing his money quite well :) Jon...

#41 Bernie_Larkham

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Posted 05 January 2013 - 04:43 PM

Jon out of interest what's the share at National these days, love to join down the track. Is it about 10k?

#42 Stinkler

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Posted 05 January 2013 - 05:12 PM

Think it was $11 or 12 last I heard. Easy,,,,,

#43 Bernie_Larkham

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Posted 06 January 2013 - 02:44 AM

Think it was $11 or 12 last I heard. Easy,,,,,

What is this golf game you talk of?

I know you can lease around 3.5k per year but too bloody far right now....

#44 Nikey Ho

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Posted 06 January 2013 - 03:30 AM

Think it was $11 or 12 last I heard. Easy,,,,,

What is this golf game you talk of?

I know you can lease around 3.5k per year but too bloody far right now….

There’s many a slip ’tween a cup and a lip.

http://www.golflink.com.au/...

And Stab are apparently going to build a second course.....Peter Thomson designed......with membership at a reported $100k.....I didn't think you could commit suicide twice?

#45 Bernie_Larkham

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Posted 06 January 2013 - 04:15 AM

Nikey spot on. you'd have to be a ducking moron togo forthat. can anyone point to a club with the share or debenture structure that has actually been a good financial investment? Ppretty much allare merely lifestyle choices forthe rich and shameless. I wish I was rich as I would definitely be shameless :-)




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